What is the maximum amount for an SBA microloan?

SBA microloans go up to $50,000. Most borrowers take out far less than the ceiling, so they work best for targeted needs: working capital, inventory, equipment, or supplies. Amounts, rates, and terms are set by the nonprofit intermediary lender in your area, not by the SBA directly.

What credit score do you need for an SBA microloan?

There is no universal minimum. Each nonprofit intermediary sets its own credit criteria. In general, microloans accept lower credit scores than a standard 7(a) loan, where most lenders expect a personal FICO around 640 or higher in 2026. If your score is below 640, a microloan intermediary is often your most accessible SBA-backed option.

Can I use an SBA microloan for real estate?

No. SBA microloans cannot be used to purchase real estate or to pay off existing debt. Approved uses are working capital, inventory, supplies, furniture, fixtures, equipment, and machinery. If your project involves real estate, a 7(a) or SBA 504 loan is the appropriate program.

How is an SBA microloan different from a 7(a) loan?

The main differences are lender type, size, and credit bar. Microloans come from nonprofit intermediaries and max out at $50,000 with lower credit requirements. 7(a) loans come from banks, go up to $5,000,000, and carry stricter personal credit standards. Microloans also often include business training or technical assistance; 7(a) loans do not.

SBA Microloans: Under $50K and Lower Credit Bars

SBA microloans go up to $50,000 through nonprofit intermediaries, not banks. Lower credit bars, no real estate, and often free business training. Here is who they are built for.

SBA microloans go up to $50,000 and run through nonprofit intermediary lenders instead of banks. They were built for newer businesses and owners whose credit is below what most 7(a) lenders want. Rates and terms vary by intermediary, but the credit bar is generally lower and many intermediaries bundle in free business training.

What a microloan is and who actually lends it

A microloan is a small, SBA-backed loan made through a network of nonprofit and community-based intermediaries that the SBA has approved and funded directly. These are not banks. They are mission-driven organizations, often community development financial institutions (CDFIs), that use SBA capital to lend to borrowers who struggle to qualify at a conventional bank.

The SBA sets the loan ceiling at $50,000. Within that ceiling, the intermediary decides the amount, the rate, and the repayment schedule. The SBA does not dictate a universal interest rate or term, so expect those to vary depending on which intermediary you work with and where your business is located.

One note worth keeping: because each intermediary sets its own underwriting criteria, there is no single microloan credit score to hit. If one intermediary says no, a different one in your state may say yes.

Who the microloan program is built for

The program is aimed at small businesses and start-ups that are too small or too early-stage for a standard 7(a) loan. In practice that often means:

Owners with credit below 640. Most active 7(a) lenders want a personal FICO around 640 or higher (as of 2026, the SBA itself sets no fixed score minimum, but lender practice has stayed in that range). If your score is below that line, a microloan intermediary is often the next realistic stop before an outright decline.
Businesses under two years old. Start-ups often lack the revenue history 7(a) lenders want. Microloan intermediaries are accustomed to evaluating character and potential alongside the numbers.
Very small borrowing needs. A $15,000 request to stock a retail display or buy a food truck wrap is too small for most banks to bother with on a 7(a). Microloans were made for exactly this.

Take Maria, a home baker who has been running her business for eight months. Her personal FICO is 610. A 7(a) lender is unlikely to approve her. A microloan intermediary can look at her order history, her business plan, and her character as a borrower and still write the loan.

What you can use it for (and what you cannot)

SBA microloans are flexible on use, but they have one firm boundary: no real estate.

Approved uses include:

Working capital (covering payroll, rent, day-to-day operating costs while revenue catches up)
Inventory and supplies
Furniture and fixtures
Equipment and machinery

You cannot use a microloan to pay off existing debt or to purchase real estate. If real estate or larger equipment is part of the picture, a 7(a) or SBA 504 loan is the right tool. For a full side-by-side of the programs, see SBA loan programs compared.

How a microloan compares to a 7(a)

The two programs serve different borrowers and should not be treated as substitutes.

| | Microloan | 7(a) |
|---|---|---|
| Maximum loan | $50,000 | $5,000,000 |
| Who lends | Nonprofit intermediaries | Banks and credit unions |
| Credit bar | Lower, varies by intermediary | Typically 640+ personal FICO in practice |
| Real estate | Not allowed | Allowed |
| Business training | Often included | Not included |

If your credit is under 640 or your loan need is under $50,000, microloans are worth exploring first. If your score is solid and your project is larger, read more about what lenders actually check for a 7(a) before you apply. See the SBA loan requirements overview for the full eligibility picture.

How to find a microloan intermediary in your state

The SBA maintains a list of approved microloan intermediaries by state, available at sba.gov. Because these are local nonprofits rather than national banks, there is no single phone number or website. You look up which intermediary operates in your region and apply directly with them.

A few practical steps:

Search "SBA microloan intermediary" plus your state name. The SBA's site surfaces the current list.
Contact the intermediary directly. Many have an intake form; some do an initial call before pulling your credit.
Ask about business training. Many intermediaries include free counseling or bookkeeping coaching as part of the deal.
Check whether a CDFI lender in your area is also an option. CDFIs often overlap with microloan intermediaries and may have additional programs.

For the broader lender landscape, find a lender in your state and filter by loan size and program type.

If your file is ready and you want to move quickly, matching with a lender who writes small loans in your area is the fastest next step.